upeda energy update
TRANSCRIPT
UPEDA Energy Update (2/13/2015)Abhilash “Abhi” Kantamneni| Michigan Technological University
Houghton Winters
Source: Mining Journal
Source: Mining Gazette
Source: Michigan Tech Alumni
Source: Mining Journal
Source: boniashburn.com
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MI AVERAGE RESIDENTIAL ELECTRIC RATES 2013[$/KWH]
MI Average: $0.14/kWhSource: MPSC Utility Company Annual Reports 2013
Residential Electric Rates
Residential Electric Rate Increases
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MI AVERAGE RESIDENTIAL ELECTRIC RATE INCREASE 2001-2013
MI Average: 74%
Source: MPSC Utility Rates Summary
Average Residential Electricity Retail Rates by State (2013)
StateAverage Price
[$/kWh]Hawaii $0.37
Houghton $0.21-$0.24New York $0.19
Alaska $0.19Connecticut $0.18
Vermont $0.18New Hampshire $0.17
California $0.16New England $0.16
Middle Atlantic $0.16Massachusetts $0.16
New Jersey $0.16Michigan $0.15 Source: www.eia.gov
MI Average: $0.11/kWhSource: MPSC Utility Company Annual Reports 2013
Commercial Electric Rates
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MICHIGAN COMMERCIAL UTILITY RATES 2013 [$/KWH]
Commercial Electric Rate Increases
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MICHIGAN COMMERCIAL UTILITY RATE INCREASES 2001- 2013 [%]
Source: MPSC Utility Company Annual Reports 2013
Michigan Tech KRC Photovoltaic Research Center
Location: Tree Cover and Solar Window
Image Source: www.solarfeeds.com
Best Summer Angle: 30*
Best Winter Angle: 60*
Best Average Angle: 47*
Advantages of High Module Tilt: Albedo
Source: nsidc.org
0
50,000
100,000
150,000
200,000
250,000
300,000
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450,000
500,000
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W/m
^2
Day of the Year
Solar Irradiation and Albedo
S_Horizontal (W/m^2) Albedo (W/m^2)
Source: MTU KRC
Advantages of High Module Tilt: Snow Shedding
0
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60
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21
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31
63
77
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1,0
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1,1
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1,2
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1,3
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1,4
85
1,5
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1,6
97
1,8
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1,9
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2,0
15
2,1
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2,2
27
2,3
33
2,4
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2,5
45
2,6
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2,7
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2,8
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2,9
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3,0
75
3,1
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3,2
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3,3
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3,4
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3,6
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3,7
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3,8
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Ener
gy P
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Wh
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Hours since 12:00 Am Nov 1 2013
PV System Output Under Snowy Conditions
45* 30* 15*
Shedding from 45*
Source: MTU KRC
Source: Michigan Public Service Commission
Source: MTU KRC Data
Houghton Average = 3.8 Peak Sun Hours/Day*Energy = 1kW*3.8h = 3.8kWh/Day (Average)
Source: pveducation.org
*Source: MTU KRC Data
Source: MTU KRC Data
Nov-Feb total irradiance = only 8% year total
Source: www.nrel.gov
Utility Fuel Source Summary
Fuel Source USA OCREA UPPCO Region
Coal 39.10% 63.80% 54.11% 59.43%
Nuclear 19.18% 23.10% 23.08% 25.36%
Gas 27.57% 5.50% 8.90% 9.77%
Oil 0.67% 0.10% 0.50% 0.55%
Hydroelectric 7.07% 3.40% 9.55% 0.65%
Biofuel 0.00% 0.00% 0.45% 0.49%
Biomass 0.92% 0.10% 0.41% 0.45%
Wind 4.11% 2.80% 2.50% 2.75%
Wood 0.48% 0.10% 0.44% 0.49%
Other 0.71% 1.10% 0.50% 0.44%
Solar 0.20% 0.00% 0.02% 0.02%
Source: OCREA Fuel Mix Report
Source: MPSC Regional Average Fuel Mix Disclosure
Source: EIA Total Power Industry Fuel Sources
Currently all MI utilities are on track to meet RES Compliance*
Phased integration of renewables 50% cheaper than new coal generation facilities.
*Source: MPSC Report on RES Compliance
*Figure: MIRECS 2009-2013 Credits by Energy Source
Impact of MI PA 295
Benefits of Renewables
Michigan Department of Energy, Labor & Economic Growth Report on Green Jobs says renewable energy sector job creation = 3% of all private sector employment in state
International Energy Agency Report on Energy Security says renewable energy systems reduce supply disruptions and reliance on imported fuel.
Actual Quote: “The only green that matters, is the color of my $$$$$”
(Obviously, not a philosopher)
Source: http://www.michigan.gov/mpsc
4 Investor-Owned Utility Companies
3 Rural Electric Cooperatives
19 Municipal Electric Utilities
1955• Presque Isle Power Plant
(PiPP) built by Cliffs
1980• PiPP sold to WEC.
• Iron Ore Mining CompanyCliffs:
• Generation Utility based in WisconsinWEC:
• Coal fired Power Plant in Marquette, MI. Net Generation: 431MWPiPP:
Source: WNMU Public Broadcasting
Source: www.geo.msu.edu
2000•ATC is formed
2001•MISO is formed.
• Independent System Operator (ISO)
• Maintains Reliability in Midwest Region
MISO:
• Nation’s first transmission only utility
• Builds and maintains Transmission in WI, UP
ATC:
2004
• MISO and ATC create SSR Tarrifs
2008• MI PA 296 passes
• System Support Resource
• Gen. Units that HAVE to run to ensure grid reliability (92%/8% - WI/UP)
SSR:
• Regulates MI Electric Utility Markets
• Electric Choice limited to 10% of retail sales and iron ore mining Facilities
MI PA 296:
Source: http://www.michigan.gov/mpsc
May 2013•Cliffs move from WEC to Integrys
Aug 2013•WEC notifies MISO of PiPP Closure
Oct 2013•MISO designates PiPP as SSR
Feb 2014•MISO agrees to pay WEC $52,230,000/year
Mar 2014• PSCW sues MISO at FERC
July 2014• FERC orders MISO to do ‘load shedding’ study
• Wisconsin Regulatory Authority
• Oversees public utilities, serves public interest PSCW:
• Federal Energy Regulatory Commission
• Regulates interstate transmission of electricity, gas and oil.FERC:
Aug 2014•MISO completes ‘load-shedding’ study
Nov* 2014•FERC schedules final settlement call
May 2014
• WE applies for ‘WEC’ LBA split into MIUP and WEC
Nov 2014• NERC approves split
(PiPP)• PiPP to remain open till 2020.
Cliffs• Cliffs to continue purchasing power from PiPP till retirement in 2020.
UPPCO
• UPPCO to purchase the generation and distribution assets, including PiPP, from Wisconsin based utilities We Energies and Integrys.
UPPCO
• UPPCO to ‘step into’ existing rate structures of We Energies and WPS (part of Integrys) customers.
Invenergy• Invenergy to build a gas-fired replacement to PiPP on Cliffs’ property in Marquette.
(MPSC
• MPSC to remove objections to the merger of Wisconsin Energy and the Integrys Energy Group.
(SSR)
• Protecting residents and businesses in the UP against SSR subsidies to keep PiPP open for reliability reasons.
Reliability
• Replacement gas-fired generation in the UP reducing dependence on out-of state coal plants while also maintaining long term reliability.
Independence
• A single U.P.-based corporation (UPPCO) providing electric service to a majority of the U.P..
‘Global Settlement Benefits’
•SSR costs from Jan – July 2015. Who Pays?
Feb 9•Cliffs returned to PiPP. Why still SSR?
•White Pine and Escanaba?
Problem 1: Existing SSR Costs
Problem 2: Long term Reliability?
Source: International Monetary Fund
Source: NYSE
•No upgrades to UP infrastructure
•MI PA 296 still exists.
•Replacing PiPP with PiPP
Problem 2: Long term Reliability?
•New gas plant for mines + some additional
•New generation after 2020?
•Transmission from WI?
Problem 3: Energy Independence?
Problem 4: Long term rates?
Residential Electric Rate Increases
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MI AVERAGE RESIDENTIAL ELECTRIC RATE INCREASE 2001-2013
MI Average: 74%
Source: MPSC Utility Rates Summary
What can we do about it?SAVE SAVE SAVE!
Next Year: Wedding
Next Decade: Kids to Disneyworld
Retire: Buy a Boat
Abhi’s American Dream
Target: Wedding Guests
5% EE
Target: Disneyworld
15% EE
Target: Boat
30% EE
$87$142
$595
$0
$100
$200
$300
$400
$500
$600
$700
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Years
Average Running Cost by Light Source
LED CFL Incandescent
5% EE
+1 LED = +1 Wedding Guest
15% EE
Programmable Thermostat
-1* = ~ +3% Gas EE + ~+1% Elec. EE
Turn down water furnace
-10* = ~ 1% EE
Source: energy.gov
30% EE
Source: guep.org
MI Total: $3.3 Billion/year
Source: MPSC Utility Company Annual Reports 2013
UP Residential Electric Expenses
AVERAGE RESIDENTIAL ELECTRIC EXPENDITURE 2013 [MILLION $/YEAR]
MI Total: $4.7 Billion/year
Source: MPSC Utility Company Annual Reports 2013
UP Commercial Electric Expenses
AVERAGE COMMERCIAL ELECTRIC EXPENDITURE 2013 [MILLION $/YEAR]
Resources for Individuals
www.EfficiencyUnited.com Energy Efficiency rebates.
MichiganSaves.org EE and RE financing, no home equity required, 4-7% APR
PACE financing
www.energy.gov/energysaver/ Energy Saver Guidebook
Community Action Agency Low income weatherization assistance
www.Abhilash.me MI Solar CalculatorMI Solar GuidebookUP Energy Updates
Presentations
www.EnergizeHoughton.org Community EE tools
Resources for Small Businesses
www.EfficiencyUnited.com Energy Efficiency rebates.
MichiganSaves.org EE and RE financing for businesses
PACE financing
MI RETAP FREE onsite energy assessments
www.EnergizeHoughton.org Sign up for mailing list/updates
Resources for Industrial Parks
